Hey ozitraveller, yes it is as simple as a regular install would be. Create a new VM, create the vdi file, (the actual "Hard Drive" that the VM see's) and in your settings, make sure your drives are such that you can point to the actual iso of VSIDO. Start it up and just pretend your on a regular install. Should go perfect. Remember when your in the VM, all the stuff you do during the live boot, the install of VSIDO, is all happening on a file on you hdd. Not affecting the actual hdd, just the vdi file you created when setting up the VM. If you have any questions, just let me know.
Perhaps I'll create a step by step How To for this. VM's are a handy way for people to see if they'll like a distro!